Saturday, January 28, 2012

Journal Entry – Exercise Problem 2

Mr Ashok commenced business on 1st January, 1992 with a capital of Rs.1,00,000 in cash. On the same date he opened the bank account and deposited Rs.20,000. During the month of January 1992 the following transactions took place:
                                                                          Rs.
Jan       1 Bought goods for cash                      70,000
            2 Sold good to Rahul & Co.(Credit)   38,000
         
           15 Sold goods for cash                         9,000
           
            21 Rahul & co. paid by cheque          35,000
          
            31 Paid rent by cash                            2,000
                
                Paid wages by cash                          3,000
                Withdrew cash personal use            5,000
Make journal entries for the transactions.
Date
Particulars
L.F.
Debit
Rs.
Credit
Rs.
 
1992 Jan 1
Cash A/c                        Dr.
    To Capital A/c
(Ashok brought in capital of Rs.1,00,000 in cash)
 
1,00,000
 
1,00,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

For Further Study

2 comments:

  1. purchased mobile phones as under from nokia ltd.
    (1) 25 pieces 'Elegent' model @rs.6000 each
    (2) 40 pieces 'Executives' model @rs.4500 each
    (3) 50 pieces 'Economy' model @rs.2500 each


    please sir this journal entry i can't solve please help me

    ReplyDelete
  2. First understand that it means purchase was done under credit from Nokia limited. The normal is debit to purchases a/c and credit to Nokia a/c.

    ReplyDelete